In my opinion, the Currency War is creating a Perfect Storm for the Dollar and the Euro. We have a Western Banking System that is in debt up to its eyeballs ($17.5 trillion) with another $220 trillion in the U.S's unfunded liabilities coming due over the next 20 years (I do not know the extent of Europe's unfunded liabilities).
In direct opposition to the Western Banking System is the Eastern Banking System which is rapidly usurping the Western Banking Systems total control of the trading of oil and energy around the planet. The Eastern Banking System has its own problems with debt, and inflation but it has accumulated huge currency and gold reserves.
Last weeks announcement that the largest energy deal in the history of the earth (between Russia and China) will bypass the dollar and be settled in Yuan and Rubles sets the stage for a rapid erosion of the Dollar's role as world reserve currency. Saudia Arabia's largest customer is now China and there is discussion of direct trade for oil bypassing the dollar there as well.
The USD's Global Reserve status has never been more precarious and the shift is occurring more rapidly than I had previously thought possible.
The Eastern Banking System values gold for backing its currency and the flow from West to East is well documented. It is nor "If" but "When" a crisis in the delivery of physical gold occurs and a global reset of it's value happens. All of this is great for today's buyers of the shares of quality gold producers at highly discounted prices.
Strategy can be simple here: Buy, hold and collect your 2% dividend while awaiting rapid price appreciation of the shares when the real scramble for physical assets hits.
Since writing this, France has made statements indicating it wants to move away from the dollar and now Germany's feathers are getting ruffled (again). South Korea has started cross-currency trading with China along with a host of other countries. It is hard to keep up with the troubles that are heading directly at our dollar.
It is noteworthy that India is reducing it's tariff on gold from 10% to 6% on Thursday.
Bill Holter predicts that soon Saudi Arabia will begin accepting currency other than dollars for its oil. When that happens the dollar will be dead. He indicates that that day may be coming soon. There have been meetings between the Saudis and the Chinese/Russians. But no outcome has been announced. Maybe the Saudi's are getting nervous by being paid with a sickly fiat currency? Anyone interested could google for his writings on the topic. They are all speculation, but it seems to me that it is sensible speculation. It seems to be the only logical outcome. The only thing yet to be determined is the timing.